StateDeptcable1975-214671

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Message Text

UNCLASSIFIED

PAGE 01 LIMA 02537 271805Z

12

ACTION COME-OO

INFO OCT-01 ARA-10 ISO-OO EB-07 INT-05 /023 W

009714

R 271655Z MAR 75
FM AMEMBASSY LIMA
TO SECSTATE WASHDC 4515

UNCLAS LIMA 2537

E.O. 11652: N/A
TAGS: BEXP, PE

SUBJECT: SANTA ROSA MINING PROJECT

REF: STATE 49914

1. THERE FOLLOWS REPLY TO QUESTIONS POSED PARA 2 REFTEL:

A(A) PARSONS-JURDEN DIVISION OF RALPH M. PARSONS COMPANY DELIVERED
PRE-FEASIBILITY STUDY TO MINERO PERU AS SCHEDULED IN EARLY MARCH.
FEASIBILITY STUDY TO BE DELIVERED BY SEPTEMBER 5 BY SAME FIRM.

(B) MINERO PERU OFFICIAL SAID THAT THERE IS POSSIBILITY THAT
PARSON JURDEN COULD CONTINUE AS ENGINEERING AND CONSTRUCTION
CONTRACTOR, ALSO WITH MANAGEMENT CONTRACT, FOR FIRST FEW
YEARS OF OPERATION. THIS WOULD DEPEND ON BANKS SUPPLYING
FINANCING PACKAGE; THAT IS, MINERO PERU WOULD PROBABLY BE
WILLING TO DESIGNATE ANY COMPANY SATISFACTORY TO BANKS.

(C) PROSPECTS FOR US FIRMS EXCELLENT. CONSIDERING WHOLE COMPLEX,
INCLUDING OPEN PIT MINE PRODUCING 165,000 METRIC TONS COPPER,

ROADS, INFRASTRUCTURE, REFINERIES, PORTS, ETC. THIS IS POTENTIAL
$1.2 BILLION PROJECT. DEPENDING ON MEANS OF FINANCING, IT
APPEARS THAT, DUE TO SCALE OF PROJECT, US ONLY FEASIBLE SOURCE
FOR EQUIPMENT AND CONSTRUCTION SUPERVISION. MINERO PERU
ALREADY TALKING TO US BANKS AND KAISER ENGINEERS. IF FINANCING
APPEARS FEASIBLE. MINERO PERU WILL PLACE ORDERS FOR LONG-LEAD
ITEMS SOMETIME JULY-AUGUST THIS YEAR. PRELIMINARY ESTIMATE

IS THAT THE FIRST ORDER WOULD BE FOR $23 MILLION TO COVER
ELECTOR-HAUL TRUCKS AND DRAG LINES.

UNCLASSIFIED

UNCLASSIFIED

PAGE 02 LIMA 02537 271805Z

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

2. COMMENT: MINERO PERU IS ANXIOUS TO INITIATE PRODUCTION ASAP
DUE TO HIGH PROFITABILITY AND NEED TO INCREASE COPPER EXPORTS
IN SHORTEST POSSIBLE TIME. THIS ANXIETY IS MAIN ADVANTAGE WE
HAVE OVER RIVALS. AT SAME TIME, IT WOULD BE UNWISE FOR
LARGE NUMBER OF COMPANIES TO DELUGE MINERO PERU UNTIL
ENGINEERING STUDIES COMPLETED. HOWEVER, TI WOULD NOT HURT TO
INFORM APPROPRIATE OFFICIALS OF MINERO PERU OF INTEREST BY
INDIVIDUAL FIRMS. DISCRETION IS REQUIRED IN ORDER NOT TO
CONFUSE OR TO DELAY PREPARATION OF PROJECT.

DEAN

UNCLASSIFIED

NNN

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Message Attributes

Automatic Decaptioning: X

Capture Date: 01 JAN 1994

Channel Indicators: n/a

Current Classification: UNCLASSIFIED

Concepts: n/a

Control Number: n/a

Copy: SINGLE

Draft Date: 27 MAR 1975

Decaption Date: 01 JAN 1960

Decaption Note:

Disposition Action: n/a
Disposition Approved on Date:

Disposition Authority: n/a
Disposition Case Number: n/a
Disposition Comment:

Disposition Date: 01 JAN 1960
Disposition Event:

Disposition History: n/a
Disposition Reason:

Disposition Remarks:

Document Number: 1975LIMA02537
Document Source: CORE
Document Unique ID: 00
Drafter: n/a
Enclosure: n/a
Executive Order: N/A
Errors: N/A

Film Number: D7501 08-0597
From: LIMA

Handling Restrictions: n/a
Image Path:

ISecure: 1

Legacy Key: Iink1975/newtext/t1 975031 0/aaaaaitw.tel

Line Count: 71

Locator: TEXT ON-LINE, ON MICROFILM
Office: ACTION COME
Original Classification: UNCLASSIFIED
Original Handling Restrictions: n/a
Original Previous Classification: n/a
Original Previous Handling Restrictions: n/a
Page Count: 2

Previous Channel Indicators: n/a
Previous Classification: n/a
Previous Handling Restrictions: n/a
Reference: 75 STATE 49914
Review Action: RELEASED, APPROVED
Review Authority: hartledg
Review Comment: n/a
Review Content Flags:

Review Date: 19 JUN 2003
Review Event:

Review Exemptions: n/a

Review History: RELEASED <19 JUN 2003 by RuthemTJ>; APPROVED <02 MAR 2004 by hartledg>

Review Markings:

Margaret P. Grafeld
Declassified/Released
US Department of State
EO Systematic Review
05 JUL 2006

Review Media Identifier:

Review Referrals: n/a
Review Release Date: n/a
Review Release Event: n/a
Review Transfer Date:

Review Withdrawn Fields: n/a
Secure: OPEN
Status: NATIVE

Subject: SANTA ROSA MINING PROJECT
TAGS: BEXP, PE
To: STATE
Type: TE

Markings: Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006